How are Camp Margaritaville's licensing royalties calculated for permanent dwellings and vacation homes?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensing royalties are earned on permanent dwelling and vacation home sales in Margaritavillethemed housing communities throughout the United States, Mexico, and Central America. The royalties are calculated as a percentage of the purchase price and recognized once the home sales have closed. The Company also earns royalties associated with the sale of timeshare units in the United States and the Caribbean. These royalties are subject to a minimum annual guarantee.
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, the company earns licensing royalties on permanent dwelling and vacation home sales within Margaritaville-themed housing communities located in the United States, Mexico, and Central America. These royalties are calculated as a percentage of the purchase price of the home. The royalty is recognized by Camp Margaritaville once the home sale has been closed.
In addition to royalties from the sale of permanent dwellings and vacation homes, Camp Margaritaville also earns royalties from the sale of timeshare units in the United States and the Caribbean. These royalties are subject to a minimum annual guarantee, providing Camp Margaritaville with a baseline income regardless of sales volume.
For Camp Margaritaville franchisees, this means that a portion of the revenue from each home sale goes to the franchisor as a royalty. The exact percentage is not specified in this excerpt, but it is based on the final purchase price. Franchisees should be aware of these royalty obligations as they factor into the overall profitability of developing and selling Camp Margaritaville-themed properties.